Yiren Digital Reports Third Quarter 2024 Financial Results

BEIJING, Nov. 20, 2024 /PRNewswire/ -- Yiren Digital Ltd. (NYSE: YRD) ("Yiren Digital" or the "Company"), an AI-powered platform providing a comprehensive suite of financial and lifestyle services in China, today announced its unaudited financial results for the quarter ended September 30, 2024.

Third Quarter 2024 Operational Highlights

Financial Services Business

    --  Total loans facilitated in the third quarter of 2024 reached RMB13.4
        billion (US$1.9 billion), representing an increase of 3.5% from RMB12.9
        billion in the second quarter of 2024 and compared to RMB9.8 billion in
        the same period of 2023.
    --  Cumulative number of borrowers served reached 11,611,899 as of September
        30, 2024, representing an increase of 7.4% from 10,807,497 as of June
        30, 2024, and compared to 8,595,780 as of September 30, 2023.
    --  Number of borrowers served in the third quarter of 2024 was 1,498,020,
        representing an increase of 0.4% from 1,491,756 in the second quarter of
        2024 and compared to 1,204,012 in the same period of 2023. As our
        efforts to upgrade the customer mix reach a milestone success, we are
        now shifting our focus to increasing the repeat rate of existing
        high-quality borrowers.
    --  Outstanding balance of performing loans facilitated reached RMB22.8
        billion (US$3.2 billion) as of September 30, 2024, representing an
        increase of 4.3% from RMB21.8 billion as of June 30, 2024 and compared
        to RMB15.1 billion as of September 30, 2023.

Insurance Brokerage Business

    --  Cumulative number of insurance clients served reached 1,470,738 as of
        September 30, 2024, representing an increase of 4.3% from 1,410,158 as
        of June 30, 2024, and compared to 1,256,762 as of September 30, 2023.
    --  Number of insurance clients served in the third quarter of 2024 was
        82,291, representing a decrease of 7.3% from 88,766 in the second
        quarter of 2024, and compared to 123,693 in the same period of 2023.
    --  Gross written premiums in the third quarter of 2024 were RMB1,351.3
        million (US$192.6 million), representing an increase of 27.4% from
        RMB1,060.9 million in the second quarter of 2024 and compared to
        RMB1,428.5 million in the same period of 2023. The quarterly increase
        was attributed to the gradual recovery of our life insurance business
        following product changes made in response to new regulations, along
        with the continued rise in renewed life insurance premiums.

Consumption and Lifestyle Business

    --  Total gross merchandise volume generated through our e-commerce platform
        and "Yiren Select" channel reached RMB507.6 million (US$72.3 million) in
        the third quarter of 2024, representing a decrease of 8.5% from RMB554.6
        million in the second quarter of 2024, and compared to RMB563.2 million
        in the same period of 2023. The decrease was mainly due to the already
        high penetration of our products and services within the existing
        customer pool, along with our strategic scale-back of product offerings
        as we shift our focus to upgrading customer segmentation.

"I'm pleased to report a stable and healthy quarter with concrete business development and strategic exploration, driven by our 'quality over quantity' strategy, which underscores our consistent focus on sustainable, high-quality growth." said Mr. Ning Tang, Chairman and Chief Executive Officer.

"Our financial services business has improved asset quality through strong risk management and borrower optimization. We've also made progress in exploring new online business models for our insurance division. As a tech-powered platform, Yiren Digital prioritizes the use of technology and digital capabilities to enhance our business model. Furthermore, our AI investments are driving operational efficiency and enhancing the customer experience. These efforts lay the foundation for higher-quality growth and long-term value for our stakeholders."

"In the third quarter of this year, our total revenue reached RMB 1.5 billion, up 13% year-over-year." Mr.Yuning Feng, Chief Financial Officer commented. "On the balance sheet side, as we continued to make strategic long-term investments this quarter, cash and cash equivalents decreased compared to the end of the previous quarter, bringing the total to RMB3.7 billion. Despite this, our cash position remains strong and competitive within the industry. Meanwhile, we are continuing share buybacks and executing cash dividends to enhance returns for our shareholders."

Third Quarter 2024 Financial Results

Total net revenue in the third quarter of 2024 was RMB1,479.1 million (US$210.8 million), representing an increase of 12.8% from RMB1,310.8 million in the third quarter of 2023. Particularly, in the third quarter of 2024, revenue from financial services business was RMB836.2 million (US$119.2 million), representing an increase of 25.2% from RMB668.0 million in the same period of 2023.The increase was attributed to the persistent and growing demand for our small revolving loan products. Revenue from insurance brokerage business was RMB85.5 million (US$12.2 million), representing a decrease of 67.7% from RMB264.6 million in the third quarter of 2023. The decrease was primarily driven by a decline in life insurance sales, resulting from product modifications mandated by new regulations, along with an industry-wide reduction in commission fee rates due to the implementation of more stringent regulatory standards on rates and terms. Revenue from consumption and lifestyle business and others was RMB557.4 million (US$79.4 million), representing an increase of 47.4% from RMB378.2 million in the third quarter of 2023. The annual increase was primarily attributed to the continuous growth of the service and product penetration in the expanding base of paying customers. As the penetration rate reached a substantial level in the third quarter of 2024, the growth rate is expected to moderate.

Sales and marketing expenses in the third quarter of 2024 were RMB335.6 million (US$47.8 million), compared to RMB195.7 million in the same period of 2023. The increase was primarily driven by the swift growth of our financial services segment and enhanced marketing endeavors aimed at attracting new, high-caliber customers while optimizing our customer composition.

Origination, servicing and other operating costs in the third quarter of 2024 were RMB205.9million (US$29.3 million), compared to RMB245.4 million in the same period of 2023. The decrease was mainly due to the decline in insurance brokerage services.

Research and development expenses in the third quarter of 2024 were RMB150.8 million (US$21.5 million), compared to RMB39.0 million in the same period of 2023. The increase was mainly attributed to our ongoing investment in AI upgrades and technological innovations.

General and administrative expenses in the third quarter of 2024 were RMB80.1 million (US$11.4 million), compared to RMB53.5 million in the same period of 2023. The increase was primarily due to increasing incentive bonus and employee benefits.

Allowance for contract assets, receivables and others in the third quarter of 2024 was RMB94.9 million (US$13.5 million), compared to RMB72.7 million in the same period of 2023. The increase reflects the growing volume of loans facilitated on our platform and the stringent risk estimates in response to the evolving external credit environment.

Provision for contingent liabilities in the third quarter of 2024 was RMB272.4 million (US$38.8 million), compared to RMB11.1 million in the same period of 2023. The increase was mainly attributed to a higher volume of loans facilitated under our risk-taking model([1]).

Income tax expense in the third quarter of 2024 was RMB44.7 million (US$6.4 million).

Net income in the third quarter of 2024 was RMB355.4 million (US$50.7 million), as compared to RMB554.4 million in the same period in 2023. The decrease was primarily due to the growing loan volume facilitated under our risk-taking model, resulting in substantial upfront provisions required by the current accounting principles.

Adjusted EBITDA([2]) (non-GAAP) in the third quarter of 2024 was RMB393.9 million (US$56.1 million), compared to RMB692.7 million in the same period of 2023.

Basic and diluted income per ADS in the third quarter of 2024 were RMB4.1 (US$0.6) and RMB4.0 (US$0.6) respectively, compared to a basic income per ADS of RMB6.3 and a diluted income per ADS of RMB6.2 in the same period of 2023.

Net cash generated from operating activities in the third quarter of 2024 was RMB50.4 million (US$7.2 million), compared to RMB645.4 million in the same period of 2023.

Net cash used in investing activities in the third quarter of 2024 was RMB1,859.6 million (US$265.0 million), compared to RMB393.9 million in the same period of 2023.

Net cash used in financing activities in the third quarter of 2024 was RMB22.2 million (US$3.2 million), compared to RMB502.6 million in the same period of 2023.

As of September 30, 2024, cash and cash equivalents were RMB3,705.9 million (US$528.1 million), compared to RMB5,496.9 million as of June 30, 2024. The decline is due to our long-term investments in business expansion and potential acquisitions, which are still in the early stages and have not been finalized. As of September 30, 2024, the balance of held-to-maturity investments was RMB5.1 million (US$0.7 million), remained unchanged from June 30, 2024. As of September 30, 2024, the balance of available-for-sale investments was RMB321.6 million (US$45.8 million), compared to RMB329.8 million as of June 30, 2024. As of September 30, 2024, the balance of trading securities was RMB63.3 million (US$9.0 million), compared to RMB83.9 million as of June 30, 2024.

Delinquency rates([3]). As of September 30, 2024, the delinquency rates for loans that are past due for 1-30 days, 31-60 days and 61-90 days were 1.8%, 1.2% and 1.2%, respectively, compared to 1.9%, 1.4% and 1.5%, respectively, as of June 30, 2024.

[1] The risk-taking model refers to the framework in which the company assumes the credit risk for the loans facilitated on our platform.
[2] "Adjusted EBITDA" is a non-GAAP financial measure. For more information on this non-GAAP financial measure, please see the section of "Operating Highlights and Reconciliations of GAAP to Non-GAAP Measures" and the table captioned "Reconciliations of Adjusted EBITDA" set forth at the end of this press release.
[3] "Delinquency rates" refers to the outstanding principal balance of loans that were 1-30 days, 31-60 days and 61-90 days past due as a percentage of the total performing outstanding principal balance of loans as of a specific date. Loans originating outside mainland China are not included in the calculation. We define a performing loan as one that is being repaid according to the agreed terms and has not become delinquent for more than 90 days.

Dividend Policy

Under the Company's semi-annual dividend policy, the Company distributed cash dividends in October 2024, representing a payout ratio of 14% of earnings for the first half of 2024.

Update on Share Repurchase

In the third quarter of 2024, the Company allocated US$3.0 million to repurchase shares in the public market. As of September 30, 2024, the Company had in aggregate purchased approximately 5.0 million ADSs in the open market for a total amount of approximately US$16.5 million (exclusive of commissions) under the 2022 share repurchase program.

Business Outlook

Based on the Company's preliminary assessment of business and market conditions, the Company projects the total revenue in the fourth quarter of 2024 to be between RMB1.3 billion to RMB1.5 billion, with a healthy net profit margin.

This is the Company's current and preliminary view, which is subject to changes and uncertainties.

Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses several non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA margin as supplemental measures to review and assess operating performance. We believe these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and prospects and allow for greater visibility with respect to key metrics used by our management in our financial and operational decision-making. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The non-GAAP financial measures have limitations as analytical tools. Other companies, including peer companies in the industry, may calculate these non-GAAP measures differently, which may reduce their usefulness as a comparative measure. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. See "Operating Highlights and Reconciliation of GAAP to Non-GAAP measures" at the end of this press release.

Currency Conversion

This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB7.0176 to US$1.00, the effective noon buying rate on September 30, 2024, as set forth in the H.10 statistical release of the Federal Reserve Board.

Conference Call

Yiren Digital's management will host an earnings conference call at 7:00 a.m. U.S. Eastern Time on November 20, 2024 (or 8:00 p.m. Beijing/Hong Kong Time on November 20, 2024).
Participants who wish to join the call should register online in advance of the conference at:
https://dpregister.com/sreg/10194517/fdfac17402
Once registration is completed, participants will receive the dial-in details for the conference call.
Additionally, a live and archived webcast of the conference call will be available at:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=MvArF4tV

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "confident" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yiren Digital's control. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to Yiren Digital's ability to attract and retain borrowers and investors on its marketplace, its ability to introduce new loan products and platform enhancements, its ability to compete effectively, PRC regulations and policies relating to the peer-to-peer lending service industry in China, general economic conditions in China, and Yiren Digital's ability to meet the standards necessary to maintain the listing of its ADSs on the NYSE or other stock exchange, including its ability to cure any non-compliance with the NYSE's continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in Yiren Digital's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Yiren Digital does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

About Yiren Digital

Yiren Digital Ltd. is an advanced, AI-powered platform providing a comprehensive suite of financial and lifestyle services in China. Our mission is to elevate customers' financial well-being and enhance their quality of life by delivering digital financial services, tailor-made insurance solutions, and premium lifestyle services. We support clients at various growth stages, addressing financing needs arising from consumption and production activities, while aiming to augment the overall well-being and security of individuals, families, and businesses.


                                                                                 
     
              Unaudited Condensed Consolidated Statements of Operations


                                                                             
     
        (in thousands, except for share, per share and per ADS data, and percentages)


                                                                                                                       
            
              For the Three Months Ended                                                    For the Nine Months Ended


                                                                                             September 30,                           June 30,                         September 30,   September 30,    September 30,                           September 30,      September 30,
                                                                                                      2023                                2024                                   2024             2024              2023                                     2024                2024


                                                                                                  RMB                                   RMB                                RMB             USD              RMB                                     RMB                USD



            Net revenue:



            Loan facilitation services                                                            586,883                             695,532                                600,899           85,627         1,518,401                                1,972,726             281,111



            Post-origination services                                                                 984                               1,290                                  1,421              203            12,573                                    4,483                 639



            Insurance brokerage services                                                          264,611                              91,526                                 85,530           12,188           865,664                                  301,982              43,032



            Financing services                                                                      9,937                              19,574                                 31,448            4,481            47,410                                   61,688               8,790



            Electronic commerce services                                                          350,635                             523,641                                546,366           77,856           881,218                                1,572,943             224,143



            Guarantee services                                                                     30,173                              68,934                                136,746           19,486            42,275                                  222,533              31,711



            Others                                                                                 67,551                              96,039                                 76,678           10,927           253,782                                  217,353              30,972



            Total net revenue                                                                   1,310,774                           1,496,536                              1,479,088          210,768         3,621,323                                4,353,708             620,398



            Operating costs and expenses:



            Sales and marketing                                                                   195,714                             285,101                                335,647           47,829           450,873                                  897,971             127,960



            Origination,servicing and other operating costs                                       245,360                             246,542                                205,913           29,342           791,472                                  685,725              97,715



            Research and development                                                               38,981                              55,812                                150,840           21,495           101,168                                  247,173              35,222



            General and administrative                                                             53,519                              68,670                                 80,097           11,413           180,623                                  232,441              33,123



            Allowance for contract assets, receivables and others                                  72,652                             123,285                                 94,913           13,525           160,923                                  320,532              45,675



            Provision for contingent liabilities                                                   11,104                             278,925                                272,406           38,818            28,578                                  618,589              88,148



            Total operating costs and expenses                                                    617,330                           1,058,335                              1,139,816          162,422         1,713,637                                3,002,431             427,843



            Other income/(expenses):



            Interest income, net                                                                   25,815                              24,668                                 21,877            3,117            50,869                                   74,258              10,582



            Fair value adjustments related to Consolidated ABFE                                   (8,104)                             38,706                                 36,423            5,190          (36,777)                                  90,597              12,910



            Others, net                                                                             5,177                                (11)                                 2,535              362            11,496                                    3,201                 456



            Total other income/(expenses)                                                          22,888                              63,363                                 60,835            8,669            25,588                                  168,056              23,948



            Income before provision for income taxes                                              716,332                             501,564                                400,107           57,015         1,933,274                                1,519,333             216,503



            Income tax expense                                                                    161,917                              92,036                                 44,665            6,365           424,345                                  268,480              38,258



            Net income                                                                            554,415                             409,528                                355,442           50,650         1,508,929                                1,250,853             178,245





            Weighted average number of ordinary shares outstanding,                           176,866,653                         172,831,722                            175,018,644      175,018,644       177,189,206                              173,557,082         173,557,082
    basic



            Basic income per share                                                                 3.1346                              2.3695                                 2.0309           0.2894            8.5159                                   7.2072              1.0270



            Basic income per ADS                                                                   6.2692                              4.7390                                 4.0618           0.5788           17.0318                                  14.4144              2.0540





            Weighted average number of ordinary shares outstanding,                           178,366,565                         174,711,554                            176,035,324      176,035,324       179,220,434                              175,457,062         175,457,062
    diluted



            Diluted income per share                                                               3.1083                              2.3440                                 2.0192           0.2877            8.4194                                   7.1291              1.0159



            Diluted income per ADS                                                                 6.2166                              4.6880                                 4.0384           0.5754           16.8388                                  14.2582              2.0318





            
              Unaudited Condensed Consolidated Cash Flow Data



            Net cash generated from operating activities                                          645,416                             368,908                                 50,393            7,181         1,753,781                                1,051,044             149,773



            Net cash  (used in)/provided by investing activities                                (393,919)                          (536,883)                           (1,859,587)       (264,989)          360,376                              (3,080,167)          (438,920)



            Net cash used in financing activities                                               (502,636)                          (125,884)                              (22,227)         (3,167)        (901,587)                               (162,885)           (23,211)



            Effect of foreign exchange rate changes                                                 2,395                               (896)                               (6,252)           (891)            2,543                                  (5,808)              (828)



            Net (decrease)/increase in cash, cash equivalents and                               (248,744)                          (294,755)                           (1,837,673)       (261,866)        1,215,113                              (2,197,816)          (313,186)
    restricted cash



            Cash, cash equivalents and restricted cash, beginning of period                     5,824,552                           5,993,216                              5,698,461          812,024         4,360,695                                6,058,604             863,344



            Cash, cash equivalents and restricted cash, end of period                           5,575,808                           5,698,461                              3,860,788          550,158         5,575,808                                3,860,788             550,158


                                                          
     
       Unaudited Condensed Consolidated Balance Sheets


                                                              
        
                 (in thousands)


                                                                                                                
           
        As of


                                                                                          December 31,             June 30,        September 30,   September 30,
                                                                                                  2023                  2024                  2024             2024


                                                                                               RMB                    RMB               RMB             USD





                  Cash and cash equivalents                                                 5,791,333             5,496,932             3,705,866          528,082



                  Restricted cash                                                             267,271               201,529               154,922           22,076



                  Trading securities                                                           76,053                83,889                63,276            9,017



                  Accounts receivable                                                         499,027               654,698               668,757           95,297



                  Guarantee receivable                                                          2,890               260,759               391,547           55,795



                  Contract assets, net                                                        978,051               962,482               916,543          130,606



                  Contract cost                                                                    32                   206                   279               40



                  Prepaid expenses and other assets                                           423,621             1,662,654             2,291,397          326,521



                  Loans at fair value                                                         677,835               473,311               414,803           59,109



                  Financing receivables                                                       116,164                30,501                28,672            4,086



                  Amounts due from related parties                                            820,181             1,509,651             3,338,868          475,785



                  Held-to-maturity investments                                                 10,420                 5,087                 5,087              725



                  Available-for-sale investments                                              438,084               329,829               321,550           45,820



                  Equity investments                                                                -                2,500                 7,105            1,012



                  Property, equipment and software, net                                        79,158                77,970                80,224           11,432



                  Deferred tax assets                                                          73,414                44,309                54,595            7,780



                  Right-of-use assets                                                          23,382                19,462                14,454            2,060



          Total assets                                                                     10,276,916            11,815,769            12,457,945        1,775,243



                  Accounts payable                                                             30,902                43,710                42,712            6,085



                  Amounts due to related parties                                               14,414                 2,485                96,498           13,751



                  Guarantee liabilities-stand ready                                             8,802               278,656               449,759           64,090



                  Guarantee liabilities-contingent                                             28,351               336,190               512,004           72,960



                  Deferred revenue                                                             54,044                38,843                18,348            2,615



                  Payable to investors at fair value                                          445,762               350,000               350,000           49,875



                  Accrued expenses and other liabilities                                    1,463,369             1,727,182             1,672,111          238,274



                  Deferred tax liabilities                                                    122,075                55,520                16,434            2,342



                  Lease liabilities                                                            23,648                19,280                15,226            2,170



          Total liabilities                                                                 2,191,367             2,851,866             3,173,092          452,162



                  Ordinary shares                                                                 130                   130                   132               19



                  Additional paid-in capital                                                5,171,232             5,175,653             5,198,271          740,748



                  Treasury stock                                                             (94,851)            (139,380)            (160,534)        (22,876)



                  Accumulated other comprehensive                                              23,669                47,798                21,226            3,024
    income



                  Retained earnings                                                         2,985,369             3,879,702             4,225,758          602,166



          Total equity                                                                      8,085,549             8,963,903             9,284,853        1,323,081



          Total liabilities and equity                                                     10,276,916            11,815,769            12,457,945        1,775,243


                                                                      
              
                Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures


                                                          
     
     (in thousands, except for number of  borrowers, number of insurance clients, cumulative number of insurance clients and percentages)


                                                                                                  
              
                For the Three Months Ended                                                                                  For the Nine Months Ended


                                                                     September 30,                                June 30,                                September 30,                            September 30,    September 30,                           September 30,      September 30,
                                                                              2023                                     2024                                          2024                                      2024              2023                                     2024                2024


                                                                          RMB                                        RMB                                       RMB                                      USD              RMB                                     RMB                USD



          
                Operating Highlights



          Amount of loans facilitated                                   9,814,359                               12,936,017                                    13,392,676                                 1,908,441        24,390,773                               38,239,060           5,449,022



          Number of borrowers                                           1,204,012                                1,491,756                                     1,498,020                                 1,498,020         2,128,924                                3,365,960           3,365,960



          Remaining principal of performing loans                      15,090,800                               21,827,634                                    22,768,555                                 3,244,493        15,090,800                               22,768,555           3,244,493



          Cumulative number of insurance clients                        1,256,762                                1,410,158                                     1,470,738                                 1,470,738         1,256,762                                1,470,738           1,470,738



          Number of insurance clients                                     123,693                                   88,766                                        82,291                                    82,291           293,254                                  226,191             226,191



          Gross written premiums                                        1,428,484                                1,060,885                                     1,351,311                                   192,560         3,684,325                                3,324,627             473,756



          First year premium                                              914,839                                  577,387                                       511,377                                    72,871         2,644,082                                1,602,905             228,412



          Renewal premium                                                 513,645                                  483,498                                       839,934                                   119,689         1,040,243                                1,721,722             245,344



          Gross merchandise volume                                        563,224                                  554,574                                       507,585                                    72,330         1,267,611                                1,687,280             240,435





          
                Segment Information



          Financial services business:



          Revenue                                                         667,966                                  851,031                                       836,193                                   119,157         1,733,813                                2,425,341             345,608



          Sales and marketing expenses                                    146,369                                  253,103                                       307,459                                    43,812           311,751                                  812,484             115,778



          Origination, servicing and other operating                       59,300                                  113,234                                       119,706                                    17,058           145,870                                  318,727              45,418
    costs



          Allowance for contract assets, receivables and                   77,135                                  124,765                                        93,248                                    13,288           163,111                                  319,140              45,477
    others



          Provision for contingent liabilities                             11,104                                  278,925                                       272,406                                    38,818            28,578                                  618,589              88,148





          Insurance brokerage business:



          Revenue                                                         264,611                                   91,526                                        85,530                                    12,188           865,664                                  301,982              43,032



          Sales and marketing expenses                                      3,175                                    4,263                                         3,545                                       505             9,309                                   11,373               1,621



          Origination, servicing and other operating                      176,182                                  122,358                                        78,466                                    11,181           599,650                                  337,707              48,123
    costs



          Allowance for contract assets, receivables and                  (3,981)                                 (1,502)                                        (414)                                     (59)            (355)                                   (904)              (129)
    others





          Consumption & lifestyle business and others:



          Revenue                                                         378,197                                  553,979                                       557,365                                    79,423         1,021,846                                1,626,385             231,758



          Sales and marketing expenses                                     46,170                                   27,735                                        24,643                                     3,512           129,813                                   74,114              10,561



          Origination, servicing and other operating                        9,878                                   10,950                                         7,741                                     1,103            45,952                                   29,291               4,174
    costs



          Allowance for contract assets, receivables and                    (313)                                    (11)                                        1,666                                       237           (1,545)                                   1,664                 237
    others





          
                Reconciliation of Adjusted EBITDA



          Net income                                                      554,415                                  409,528                                       355,442                                    50,650         1,508,929                                1,250,853             178,245



          Interest income, net                                           (25,815)                                (24,668)                                     (21,877)                                  (3,117)         (50,869)                                (74,258)           (10,582)



          Income tax expense                                              161,917                                   92,036                                        44,665                                     6,365           424,345                                  268,480              38,258



          Depreciation and amortization                                     1,664                                    2,026                                         2,401                                       342             5,310                                    6,319                 901



          Share-based compensation                                            513                                    2,136                                        13,235                                     1,886             5,923                                   16,578               2,362



          Adjusted EBITDA                                                 692,694                                  481,058                                       393,866                                    56,126         1,893,638                                1,467,972             209,184



          
                Adjusted EBITDA margin                              52.8 %                                  32.1 %                                       26.6 %                                   26.6 %           52.3 %                                  33.7 %             33.7 %


                         
     
     Delinquency Rates


                                        1-30 days 31-60 days 61-90 days



     December 31, 2019                     2.1 %      1.2 %      0.9 %



     December 31, 2020                     1.3 %      0.7 %      0.6 %



     December 31, 2021                     2.0 %      1.5 %      1.2 %



     December 31, 2022                     1.7 %      1.2 %      1.1 %



     December 31, 2023                     2.0 %      1.4 %      1.2 %



     March 31, 2024                        2.1 %      1.6 %      1.4 %



     June 30, 2024                         1.9 %      1.4 %      1.5 %



     September 30, 2024                    1.8 %      1.2 %      1.2 %


                                                                                             
              
                30+ Days Delinquency Rates by Vintage[1]


      
              
                Loan Issued Period                                                           
              
                Month on Book


                                                                     2           4           6          8          10           12           14           16           18           20           22           24


                  
              2019Q1                              0.0 %      0.5 %      1.6 %     2.3 %      3.3 %       4.4 %       5.9 %       6.1 %       6.4 %       6.9 %       6.9 %       6.9 %


                  
              2019Q2                              0.3 %      1.4 %      2.8 %     5.0 %      7.8 %       8.9 %       9.5 %      10.0 %      10.3 %      10.7 %      10.9 %      11.2 %


                  
              2019Q3                              0.3 %      2.0 %      5.1 %     7.6 %      9.1 %      10.4 %      11.3 %      12.4 %      13.3 %      14.1 %      14.7 %      15.2 %


                  
              2019Q4                              0.7 %      3.0 %      4.4 %     5.7 %      6.6 %       7.3 %       8.1 %       8.5 %       9.0 %       9.4 %       9.7 %      10.3 %


                  
              2020Q1                              0.8 %      2.0 %      3.4 %     4.5 %      5.4 %       5.9 %       6.5 %       6.8 %       7.1 %       7.5 %       8.1 %       8.5 %


                  
              2020Q2                              0.6 %      2.0 %      3.3 %     4.5 %      5.3 %       6.0 %       6.4 %       6.9 %       7.4 %       8.0 %       8.6 %       8.8 %


                  
              2020Q3                              1.3 %      2.8 %      4.3 %     5.4 %      6.3 %       6.9 %       7.5 %       8.2 %       8.9 %       9.3 %       9.5 %       9.5 %


                  
              2020Q4                              0.3 %      1.4 %      2.4 %     3.4 %      4.3 %       5.4 %       6.4 %       7.3 %       7.7 %       8.0 %       8.2 %       8.3 %


                  
              2021Q1                              0.5 %      1.8 %      3.0 %     4.2 %      5.3 %       6.3 %       7.1 %       7.3 %       7.5 %       7.7 %       7.8 %       7.9 %


                  
              2021Q2                              0.5 %      2.1 %      3.8 %     5.5 %      6.8 %       7.5 %       7.7 %       7.9 %       8.1 %       8.3 %       8.2 %       8.2 %


                  
              2021Q3                              0.6 %      2.5 %      4.2 %     5.4 %      6.1 %       6.5 %       6.7 %       6.9 %       6.9 %       6.9 %       6.9 %       6.8 %


                  
              2021Q4                              0.8 %      2.7 %      4.1 %     4.9 %      5.4 %       5.8 %       5.8 %       5.8 %       5.7 %       5.6 %       5.6 %       5.5 %


                  
              2022Q1                              0.7 %      2.1 %      3.2 %     4.0 %      4.6 %       4.8 %       4.7 %       4.6 %       4.6 %       4.5 %       4.5 %       4.4 %


                  
              2022Q2                              0.5 %      1.8 %      2.9 %     3.8 %      4.3 %       4.5 %       4.4 %       4.3 %       4.3 %       4.2 %       4.2 %       4.1 %


                  
              2022Q3                              0.6 %      2.2 %      3.5 %     4.3 %      4.8 %       5.0 %       5.0 %       4.9 %       4.9 %       4.8 %       4.7 %       4.7 %


                  
              2022Q4                              0.7 %      2.5 %      3.9 %     4.9 %      5.6 %       5.9 %       5.8 %       5.8 %       5.7 %       5.6 %       5.5 %


                  
              2023Q1                              0.6 %      2.4 %      4.0 %     5.2 %      5.9 %       6.2 %       6.1 %       6.0 %       5.9 %       5.5 %


                  
              2023Q2                              0.7 %      3.0 %      4.9 %     6.3 %      7.0 %       7.3 %       7.2 %       6.9 %


                  
              2023Q3                              0.9 %      3.7 %      5.8 %     7.1 %      7.9 %       8.1 %       7.8 %


                  
              2023Q4                              0.8 %      3.6 %      5.8 %     7.0 %      7.6 %


                  
              2024Q1                              0.7 %      3.2 %      5.0 %     6.4 %


                  
              2024Q2                              0.6 %      2.7 %


                  
              2024Q3                              0.6 %





     
                
                  [1]
                The 30+ days delinquency rate by vintage refers to the outstanding principal balance of loans facilitated over a specified period that are more than 30 days past due,


     as a percentage of the total loans facilitated during that same period. Loans originating outside mainland China are excluded from the calculation.

View original content:https://www.prnewswire.com/news-releases/yiren-digital-reports-third-quarter-2024-financial-results-302311261.html

SOURCE Yiren Digital